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Which of the following is an advantage to working as an intermediary...?

AThe broker can earn a higher commission
BThe broker can only offer limited assistance to each party
CThe broker increases the risk of a conflict of interest
DThe broker takes on more liability

User DanceIgel
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1 Answer

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Final answer:

One advantage to working as an intermediary in the financial industry is the potential to earn a higher commission. However, intermediaries also take on more liability.

Step-by-step explanation:

An advantage to working as an intermediary in the financial industry is that the broker can earn a higher commission.

As a financial intermediary, brokers connect savers who deposit funds in a bank with borrowers who receive loans. They earn a commission based on the transactions they facilitate, which can be higher compared to other service providers.

However, it is important to note that while brokers can earn higher commissions, they also take on more liability compared to other parties involved in the transaction.

User Vitor Canova
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